Field
The described embodiments relate to techniques for validating financial transactions conducted by electronic devices via wireless communication.
Related Art
Many modern electronic devices include a networking subsystem that is used to wirelessly communicate with other electronic devices. For example, these electronic devices can include a networking subsystem with a cellular network interface (UMTS, LTE, etc.), a wireless local area network interface (e.g., a wireless network such as described in the Institute of Electrical and Electronics Engineers (IEEE) 802.11 standard or Bluetooth™ from the Bluetooth Special Interests Group of Kirkland, Wash.), and/or another type of wireless interface (such as a near-field-communication interface). Because of the popularity of these electronic devices and the convenience provided by this wireless-communication capability, there is increasing interest in using electronic devices to conduct financial transactions. For example, a so-called ‘digital wallet’ application executing on a cellular telephone may be used to pay for a purchase at a point-of-sale terminal.
However, security remains a concern in using wireless communication to conduct financial transactions. For example, many financial institutions (such as banks and credit-card providers) require that a user provide some form of authentication (such as a signature or a personal identification number) that confirms the user's identity before a financial transaction can be completed. However, it can be challenging to provide a secure end-to-end system to communicate this authentication information during communication within the electronic devices and between the electronic devices. In addition, many existing approaches for communicating the authentication information when conducting a financial transaction via wireless communication are cumbersome (such as requiring users to repeat the same operations multiple times), and can consequently degrade the user experience. Therefore, security issues continue to restrict the use of electronic devices to conduct financial transactions, and thus constrain associated commercial activity.